ZF Meritor files antitrust lawsuit against Eaton

Oct. 6, 2006
ZF Meritor LLC an ArvinMeritor subsidiary, has filed an antitrust lawsuit against Eaton Corp. to seek an injunction prohibiting Eaton from engaging in what ZF Meritor terms anticompetitive conduct in the heavy-duty truck transmission market

ZF Meritor LLC, a joint venture between ArvinMeritor, Germany’s ZF Friedrichshafen AG, and Meritor Transmission Corp., an ArvinMeritor subsidiary, has filed an antitrust lawsuit against Eaton Corp. in the U.S. District Court for the District of Delaware to seek an injunction prohibiting Eaton from engaging in what ZF Meritor terms anticompetitive conduct in the heavy-duty truck transmission market. ZF Meritor is also asking the court to award treble damages, as authorized by federal antitrust laws.

The lawsuit alleges that Eaton has engaged in anticompetitive conduct, harming competition in the markets for heavy-duty truck transmissions by limiting consumer choice, eliminating competitive checks on pricing and suppressing innovation. The lawsuit also alleges Eaton's conduct forced ZF Meritor, though still a legal entity today, to cease operations.

“It is unfortunate that we have reached this point,” said Chip McClure, chairman, CEO & president of ArvinMeritor. “We have filed this lawsuit to protect competition, our shareholders, and heavy-duty truck buyers. In a market without competition, innovation languishes, choice evaporates and prices increase.”

To view a copy of the lawsuit, go to www.arvinmeritor.com/faircompetition.

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